Do you need a license to do bookkeeping business in the UK?
Are you planning to do a business of bookkeeping in the UK? If yes, then this guide will be very informational for you. It is easier to start a bookkeeping business in the UK. Here, you first need to understand all the bookkeeping activities that you need to provide while you get outsourced bookkeeping work. Some bookkeepers would give in-person bookkeeping service by visiting the company, while some may give virtual bookkeeping service by working remotely. There are many businesses in the UK which are looking to outsource to local bookkeeping services. However, before doing bookkeeping business in the UK, you need to know the licenses you need and other aspects.
Which license and other requirements do you need to start a bookkeeping business in the UK?
Here, are some of the license and other requirements you need before starting business of bookkeeping in the UK:
Business Structure and Registration
You may need to choose a legal structure for your business, such as being a sole trader, a partnership, or a limited company. Depending on the structure, you may need to register your business with HM Revenue & Customs (HMRC) and follow their guidelines for taxation and record-keeping.
Anti-Money Laundering (AML) Regulations
If your bookkeeping services involve handling client funds, you may be subject to Anti-Money Laundering regulations. This could require you to register with a supervisory authority and follow procedures for client due diligence and record-keeping. This is effective in keeping your clients’ funds legally safe.
Data Protection and GDPR
Handling financial information involves processing personal data, so you’ll need to comply with the General Data Protection Regulation (GDPR). It will avoid risks concerning data security like data theft, misuse of data, and data loss. It will ensure that you protect the privacy and security of client information.
Professional Indemnity Insurance
Professional indemnity insurance is not a license, however, obtaining professional indemnity insurance is often recommended for bookkeepers. This will help to protect against potential claims from clients in case of errors or omissions.
Local Business Regulations
Depending on your location within the UK, there might be additional local business regulations or requirements that you need to be aware of. This will help you provide the local bookkeeping services efficiently.
Comply with the Companies Act 2006
Bookkeeping business must comply with the Companies Act 2006 in the UK. This includes important information recording of money received, adequate financial and accounting records, recording about money spent on assets, etc.
Professional Conduct Regulations
When you provide local bookkeeping services for businesses in the UK, it is important to maintain proper conduct of regulations. Businesses must maintain proper conduct in the regulations while doing the bookkeeping activities.
These are some of the licenses and other related requirements to start a bookkeeping business in the UK. If you are finding it difficult to handle the bookkeeping and accounting work then you outsource this task to the experts.
Meru Accounting provides outsourced bookkeeping and other accounting related tasks in the UK. They have been running a successful bookkeeping business across the UK. They have all expertise about the bookkeeping regulations that ensure better local bookkeeping services for your UK-based business. Meru Accounting is a leading accounting services providing company around the world.
